GROWTHPOINT PROPERTIES LIMITED - Moody's Rating Upgrade

Moody's Rating Upgrade

GROWTHPOINT PROPERTIES LIMITED
Bond Code: GPT33
ISIN No: ZAG000126046


Bond Code: GRT02
ISIN No: ZAG000085762


Bond Code: GRT03
ISIN No: ZAG000087172


Bond Code: GRT04
ISIN No: ZAG000089210


Bond Code: GRT06
ISIN No: ZAG000101825


Bond Code: GRT07
ISIN No: ZAG000112806


Bond Code: GRT08
ISIN No: ZAG000117003


(“Growthpoint” or the “company”)



Moody’s upgrades Growthpoint’s rating to Baa2/A1.za, outlook stable

Growthpoint Properties’ leading market position, strong balance sheet and its property portfolio’s increased
resilience and defensive nature have contributed to Moody's Investors Service upgrading Growthpoint
Properties global scale issuer and senior unsecured ratings to Baa2/P-2 from Baa3/P-3, its national scale
issuer ratings to A1.za/P-1.za from A2.za/P-2.za.

Moody’s also upgraded Growthpoint’s national scale senior unsecured Medium Term Note Programme
(MTN) ratings to (P)A1.za/(P)P-1.za from (P)A2.za/(P)P-2.za.
The outlook on all ratings is stable, reflecting Moody's view that despite a weakening economic climate in
South Africa, Growthpoint will continue to produce steady revenues and operating profits and will continue to
maintain conservative credit metrics within its current rating guidance levels.

Gerald Völkel, Growthpoint Properties Financial Director, comments, “The upgrade of our investment-grade
ratings from Moody’s shows increased confidence in Growthpoint’s core credit quality on a globally
comparable basis for REITs and other commercial property firms. We are extremely pleased with our new
rating.”

Dirkje Bouma, Growthpoint Properties Treasurer, adds, “Growthpoint’s upgraded rating should favour our
ability to raise funding and benefit our funding costs.”

Dion Bate, Moody’s Vice President and Senior Analyst, explains “The upgrade recognises Growthpoint's
sizable property portfolio - around ZAR95 billion post its Acucap acquisition - track record of sound liquidity
management and strong financial metrics.”

Growthpoint is a JSE ALSI Top 40 Index company. It owns and manages a diversified portfolio of 477
properties in South Africa, 51 properties in Australia through its investment in Growthpoint Properties
Australia (GOZ) and a 50% interest in the properties at V&A Waterfront, Cape Town.

Moody’s notes Growthpoint’s Baa2/A1.za issuer ratings are supported by its strong market position as the
largest REIT (Real Estate Investment Trust) company in South Africa. It adds that Growthpoint’s recent
Acucap acquisition further strengthens its portfolio quality, giving it increased exposure to the relatively
resilient and defensive nature of the retail property sector.

Growthpoint’s ratings are also based on its property portfolio's size and quality that benefits from an active
internal management team and produces solid, recurring rental income. Its rental income is underpinned by
medium- to long-term leases, contractual annual rent escalation clauses above inflation, low vacancy rates,
and diversification.

Völkel remarks, “Growthpoint benefits from significant access to capital from diverse sources, thanks to the
strength of our balance sheet, our investment-grade credit rating, quality and diversity of our properties and
clients, strong culture of good corporate governance, respected and experienced management and our good
track record of consistently delivering on our promises. We intend to sustain a strong balance sheet through
conservative gearing and credit metrics that are well within covenants.”


19 May 2014

Debt Sponsor
Absa Bank Limited (acting through its Corporate and Investment Banking division)

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